it’s always worth doing the research if there is potential in the deal. Taking a few extra steps will save you from missing a good deal or finding a crappy one. Regarding your duplex deal, I’m assuming that many people or anyone, haven’t written because you haven’t given enough details. Questions like how many bedroom, what type of duplex, the comps in the area, the type of structure, is there a yard, what are comparable rents? etc.
One more thing that jumps out at me is, why is another rental close by selling for 168k? Maybe the landlord you’re talking to is tired and old, or maybe he has horrific tenants that damage the property. 30K difference is worth investigating. Maybe the rooms are smaller, not updated etc. Find out!
I am a first time buyer. I have been reading some, but still have lot’s to learn. I came across a duplex that I think looks promising.
Both units rent for 725.00 a month. The rentor pays all utilities. The asking price is 135K. I think that I would be able to bring him down. He is an older gentleman, and his wife wants to get out of the business.
I would put 5% down, and finance the rest at around 7% I would guess, I have not talked to a bank yet. The taxes are going to be around 1300 a year.
When I put the numbers to it, it seams to make since. There is another rental close by that is selling for 168K
Is this worth doing more research on, or am I missing something. There is probably more you need to know, I will be sure to check and repond. Thanks in advance for the advice.
I’m new also but I would say look at the tennants and payment history and their current lease. Also look at stuff like repairs needed, typical maintenance cost. Stuff you could show the bank.
I’m sure I’ve left out a bunch.